Maintain HOLD; Target Price Raised 6% to SGD0.36

• Oxley Holdings’ FY18 EBIT was in line at 91% of our full-year estimate. We update our model for its latest project completion timeline and raise our valuation for Chevron House after incorporating its latest AEI details.
• Our FY19/20E EPS is tweaked by +4%/-2% and we introduce FY21E forecasts. We roll-forward our valuation basis and lift our RNAV estimate to SGD0.71 from SGD0.68. Our Target Price is raised 2 cts to SGD0.36, based on an unchanged 50% RNAV discount.
• With a diversified geographical and business exposure, we believe Oxley can weather the headwinds to Singapore’s residential market. Nonetheless, we expect its steep valuation discount to persist as the market remains cautious towards highly leveraged developers.
• Maintain HOLD.

Source: Maybank Kim Eng Research - 27 Aug 2018